Profit & loss statement
In addition to the balance sheet, the profit and loss statement (P&L) is a crucial part of the annual financial statement, and thus of the company's external accounting. It shows profits and expenses of a certain time period (as a rule, a fiscal year) and provides information about the type, amount and origins of the company's profits. If icome exceeds outgoings, the company has posted a profit; if the opposite is in case, the result is a loss. A P&L may be created according to the cost-of-sales method or as total cost accounting.